January 1 – The partners decide to liquidate the partnership. They have the following balances:
Cash $29,917
Accounts Receivable $4 500
Equipment $ 110 000
Accumulated Depreciation $ 25 000
Accounts Payable $ 4 417
The partners were able to collect $3 500 of the accounts receivable and sell the equipment for $72 000.
a) Record all journal entries to dissolve the partnership.